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HomeMy WebLinkAboutORD 73-74• .73-74, ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION WHEREAS, the City Council of the City of Beaumont, Texas, has heretofore found and determined that it was necessary and desirable for said City to construct public works for said City, to -wit: the construction of improvements to the City's sanitary sewer system; and WHEREAS, at the time advertisement for bids was published as per paragraph (b) of Section 6, Article 2368a.1, V.T.C.S., as amended (the "Article"), there was a deficiency in needed funds to carry out and complete said improvements, as.follows: and Total Project Cost Available Funds: Proceeds from Bonds to be Sold Federal Grant Moneys Other Available Funds TOTAL Deficiency $1,000,000 7,208,857 608,974 $10,911,281 8,817,831 2, o93., 450 WHEREAS, since that time an additional $973,450 in Federal Grant Moneys has been made available making a total of $9,791,281 available for such improvements, and the Article authorizes the City to issue and sell for cash certificates of obligation for such improvements to cover the deficiency in needed funds above mentioned, to -wit: $1,120,000, which amount will not exceed 25% of those funds committed to such improvements at the time the aforementioned advertisement for bids was published;.and i2 _�/f - 1-7 �i� 73-7 L �-1 X'L q Z 3 WHEREAS, the City Council has heretofore given due and proper notice of its intention to issue such certificates in the maximum amount of $2,093,450; and WHEREAS, in view of the availability of such additional Fed- eral Grant Moneys it is necessary that the City issue and later sell for cash only $1,120,000 in principal amount of said certifi- cates of obligation; Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2. That for the purpose of evidencing the indebted- ness of said City of paying a part of the cost of constructing public works for said City, to -wit: the construction of improve- ments to the City's sanitary sewer system, there shall be issued negotiable, serial, coupon certificates of obligation of the City of Beaumont, Texas, in the principal amount of $1,120,000, to be known and designated as "City of Beaumont, Texas, Sewer System Certificates of Obligation, Series 1974," in strict conformity with the Constitution and laws of the State of Texas, particularly Article 2368a.1, V.T.C.S., as amended, and the Home -Rule Charter of said City. Section 3. That said certificates shall be dated January 15, 1974, shall be numbered consecutively from 1 to 224, both in- clusive, shall be in the denomination of $5,000 each, and shall mature serially, without option of prior redemption, on January -2- 091&'? 3 --7 15 of each of the years, and in the amounts, respectively.$ as set forth in the following schedule: 1979 $100,000 1980 3703000 1981 3.80,000 1982 270,000 Section 4. That said certificates shall bear interest at a rate to be determined in the future, but not in excess of that prescribed by Article 717k-2, V.T.C.S., as amended. Interest shall be payable on the dates indicated in the FORM OF CERTIFICATES set forth in this ordinance. Section 5. That said certificates, and the interest coupons appertaining thereto, shall be payable, shall have.the character- istics, and shall be signed and executed (and said certificates shall be sealed), all as provided and in.the manner indicated in the FORM OF CERTIFICATES set forth in this ordinance. Section 6. That the form of said certificates, including the form of registration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said certificates, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said certificates, shall be, respectively, substantially as follows: No. FORM OF CERTIFICATES: UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT, TEXAS -3- $5,000 SEWER SYSTEM CERTIFICATE.OF OBLIGATION, SERIES 1974 THE CITY OF BEAUMONT, in the County of -Jefferson, State of Texas, FOR VALUE RECEIVED, acknowledges itself indebted to and hereby promises to pay the bearer on the 15th day of January, 19 , the sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof at the rate of % per annum, interest payable January 15, 1975, and semiannually thereafter on July 15 and January 15 of each year while this certificate is outstanding. The principal of this.cer- tificate and the interest coupons appertaining hereto shall be. payable to bearer, upon presentation and surrender of this certifi- cate or proper interest coupon at The American National Bank of Beaumont, Texas, or, at the option of the holder, at Texas Com- merce Bank, National Association, Houston, Texas, which shall be the paying agents for this series of certificates. THIS CERTIFICATE IS ONE OF A SERIES OF 224 NEGOTIABLE, SERIAL CERTIFICATES OF OBLIGATION of like tenor and effect, except as to number, maturity and interest rate, numbered consecutively, from 1 to 224, both inclusive, in the denomination of $5,000 each, ag- gregating $1,120,000, and, together with the other certificates of said issue, is issued for the purpose of evidencing the indebt- edness of said City for paying a part of the cost of constructing public works for said City, to -wit, the construction of improve- ments to the City's sanitary sewer system, under and in strict -4- .73-7� 1.7 3 conformity with the Constitution and laws of the State of Texas, including particularly Article 2368a.1, V.T.C.S.., the Home Rule Charter of said City, and pursuant to an ordinance passed by the City Council of said City, which ordinance is of record in the official minutes of said City Council. THE DATE OF THIS CERTIFICATE, in conformity -with the ordinance above mentioned, is January 15, 1974. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the is- suance of this certificate and the series of certificates of which it is a part is duly authorized by law; that all acts, conditions and things required to be done precedent to and in the issuance of this certificate and this series of certificateshave been properly done and performed, have happened in regular and due time, form and manner, as required by law; that due provision has been made for levying and collecting annually by taxation amounts sufficient to provide a sinking fund for the final re- demption of said certificates at maturity and to pay the interest on this certificate as such interest comes due; that the entire issue of certificates of which this certificate is one, together with all other indebtedness of said City, is within ever.y'debt or other limit prescribed by the Constitution and laws of the State of Texas; and that, when delivered, this certificate shall be deemed and construed (i) to be a "Security" within the meaning of Chapter 8, Investment Securities, Uniform Commercial Code (Chapter 587, Acts of the 61st Legislature, Regular Session, 1969), -5- 0 and (ii) to be a general obligation of said City within the mean- ing of Chapter 784, Acts of the 61st Legislature of Texas, Regu- lar Session, 1969. IN TESTIMONY WHEREOF, the City Council of Beaumont, Texas, has caused the official seal of said City to be.impressed,:or placed in facsimile, hereon, this certificate and the interest coupons appertaining hereto to be signed with the facsimile signature or subscription of the Mayor and countersigned with the facsimile signature or subscription of the.City Clerk. COUNTERSIGNED: City Clerk, City of Beaumont, Texas (SEAL) Mayor, City of Beaumont, Texas FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. " 3 7 V - I HEREBY CERTIFY that this certificate has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas (SEAL) FORM OF INTEREST COUPONS: `73-7 � F-1 9-73 No. $ ON , 19 , the City of Beaumont, in the County of Jefferson, in the State of Texas; hereby promises to pay to bearer, without exchange or collection charges, the amount shown on this interest coupon, in any coin or currency which, on such date is legal tender for the payment of debts due the United States of America, upon presentation and surrender of this interest coupon, at The American National Bank of Beaumont, Texas, or at the option of the holder at Texas Commerce Bank, National Association, Houston, Texas, being interest due that date on the certificate, bearing the number hereinafter designated, of that issue of City of Beaumont, Texas, Sewer System Certificates of Obligation, Series 1973, dated January 15, 1974. Certificate No.. Mayor, City of Beaumont, Texas City Clerk, City of Beaumont, Texas Section 7. The approving opinion of Vinson, Elkins, Searls,. Connally & Smith, Houston, Texas, and Cusip Numbers may be printed on the backs of the certificates, but errors -or omissions in such opinion or errors or omissions of such numbers shall have no effect whatever on the validity of such certificates. -7- 3--'7 �- 973 Section 8. That there is hereby created a special fund to be designated "City of Beaumont, Texas, Sewer System Certificates of Obligation, Series 1974, Interest and Sinking Fund," and all taxes collected for and on account of said certificates shall be deposited, as collected,.to the credit of the Interest and Sinking Fund. During each year while any of said certificates are out- standing and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be suf- ficient to raise and produce the money required to pay the interest on said certificates as such interest comes due and to provide and maintain a sinking fund of not less than 2% of the principal amount of said certificates or not less than the amount required to pay the principal out of said tax, whichever is greater; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be levied, against all taxable property in the City for each year while any of said certificates are outstanding and unpaid; and said tax shall be assessed and col- lected each such year and deposited to the credit of the aforesaid Interest and Sinking -Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said certificates, as such interest comes due anal such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. -8- 6,11d, '73-7 �- .. • G�.-1 P-19�3 Section 9. That the City Council certifies that based upon all facts, estimates and circumstances now known or reasonably expected to be in existence on the date the Certifircates are delivered and paid for, the City Council reasonably expects that the proceeds of the Certificates will not be used in a manner that would cause the Certificates or any portion of the'Certificates to be an "arbitrage certificate" under Section 103(d)(2) of the Internal Revenue Code of 1954, as amended, and the temporary and proposed regulations heretofore prescribed thereunder, including, without limitation, Section 1.103-13 and 1.103-14 of the proposed regulations published in the Federal Register on May 3, 1973. Furthermore, all officers, employees and agents of the City are authorized and directed to provide certifications of facts, estimates and circumstances which are material to the reasonable expectations of the City Council as of the date the Certificates are delivered and paid for, and any such certifications may be relied upon by counsel, by the owners or holders of the Certificates, or by any person interested in the exemption of interest on the Certificates from Federal income taxation. Moreover, the City Council.covenants that it shall make such use of the proceeds of the Certificates, regulate investments of proceeds of the Certificates, and take such other and further action as may be required so that the Certificates shall not be "arbitrage certificates" under Section 103(d) of the Internal Revenue Code of 1954, as amended, and regulations prescribed from time to time thereunder. ago Section 10. That the Mayor is hereby authorized to have control of the Certificates and all necessary records and proceedings per - taming to the Certificates pending their delivery and their in- vestigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Certificates, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and en- dorsed on each of the Certificates, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of the Certifi- cateso Section 11. That said Certificates shall be sold at a later date at a price equal to not less than the principal amount there- of plus accrued interest thereon from the date thereof to the date of actual delivery. Section 12, That this ordinance shall take effect immediately upon its passage. PASSED AND APPROVED this 18th day of December, 1973. May r, Cit of Beaumont, Texas ATTEST: City Jerk, City of ea ont, Texas _ (SEAL) =_